Fraudulent inducement—also known as fraud in the inducement—is a tort (wrongful act) claim or cause of action recognized in some states for fraud that occurs when one party to a contract intentionally misrepresents a material fact—usually regarding the risks, duties, or obligations involved—that another party to the contract reasonably relies on, causing the second party to enter into a contract it would not have agreed to if not for the fraudulent representation, and causing harm (damages or losses) to the party who reasonably relied on the misrepresentation.

Because fraudulent inducement combines elements of contract and tort law it is sometimes referred to as a "contort" claim or cause of action. In states that recognize a fraudulent inducement cause of action, the plaintiff may file a lawsuit and recover damages.

But a party who made an intentional misrepresentation may avoid liability if the other party contractually disclaimed any reliance on the first party’s fraudulent representations (a disclaimer of reliance provision in the contract). Whether a party is liable in any particular case depends on the contract’s language and the totality of the surrounding circumstances.

In Maryland, fraudulent inducement is recognized as a cause of action where one party intentionally misrepresents a material fact to another during the contract formation process. The misrepresented fact must be such that the other party relies on it when deciding to enter into the contract, and this reliance must lead to harm or loss. Maryland courts will consider the elements of both contract and tort law in such cases, often examining the intent of the parties, the reliance on the misrepresentation, and the resulting damages. If a contract includes a disclaimer of reliance provision, it may protect the party who made the misrepresentation from liability, but this is not absolute. The effectiveness of such a disclaimer depends on the specific language of the contract and the overall context of the situation. Plaintiffs in Maryland may seek to recover damages if they can establish the elements of fraudulent inducement, and each case will be assessed based on its individual merits and the totality of the circumstances.